TITLE IV--STUDENT ASSISTANCE

Part B--Federal Family Education Loan Program

SEC. 430 DELEGATION OF FUNCTIONS

Section 436 (20 U.S.C. 1086) is amended to read as follows:

`SEC. 436. DELEGATION OF FUNCTIONS.

`(a) IN GENERAL- An eligible lender or guaranty agency that contracts with another entity to perform any of the lender's or agency's functions under this title, or otherwise delegates the performance of such functions to such other entity--

`(1) shall not be relieved of the lender's or agency's duty to comply with the requirements of this title; and

`(2) shall monitor the activities of such other entity for compliance with such requirements.

`(b) SPECIAL RULE- A lender that holds a loan made under part B in the lender's capacity as a trustee is responsible for complying with all statutory and regulatory requirements imposed on any other holder of a loan made under this part.'.